Abstract
The existing system of bids evaluation in the construction industry does not bring the clients the certainty if all placed bids comprise real, achievable prices. Especially in the road construction sector, where the earthworks create significant part of the works, comparing e.g. the price of 1 km of roads often gives misleading results. The paper comprises the complete proposal to modify the scope of information provided by offerors in the public procurements (in the construction industry) allowing the clients to determine easily if the contractors have placed the consistent offers i.e. if the bid prices are not too high and if the lowest bid price is not a dumping price. The Conjugated Triangle Method (CTM) of inconsistent bid detection in construction industry is based on the three inter-related parameters: means of production, time of works, on the value of works. Regardless of the offered price it should match the other two parameters.
Highlights
The system of public procurement provides public investors with the tool allowing for the choice of the optimum bid for building works execution
The Conjugated Triangle Method of the detection of inconsistent bids can be helpful especially in searching the under-priced offers – the source of many problems arising during construction work execution
It is based on the analysis of mutual conjunctions of three basic parameters: the cost, the time and means of production necessary to execute every building work
Summary
The system of public procurement provides public investors with the tool allowing for the choice of the optimum bid for building works execution. Both design documentation and technical specification describe the planned object in detail. All the aforementioned means make the bid price the most important criterion for the contractor choice Even if it is not the only criterion, the bid price remains the decisive one for the client to choose the offer. In the case of the collusion – which is a forbidden practise – the participants discuss the bid values before placing offers It leads to the situation when all bids take a relatively high value [4]. Both cases make the client’s investment much less financially effective that it was planned
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